Bloomberg reports
The report cites an official with direct knowledge of talks, saying that China is still open to agreeing a partial trade deal with the US despite the events that has transpired this week.
However, negotiators heading to Washington aren't optimistic about securing a broad agreement that would end the trade war for good. But says that China would accept a limited deal as long as no more tariffs are imposed, including the higher duties set to take effect later this month and the one in December.
Adding that China in return would offer non-core concessions like purchases of agriculture products, without offering further details.
Risk assets are jumping on the headline above but I think the algos are a bit too quick to jump the gun here. This isn't anything overly new as it plays within expectations ahead of talks tomorrow and on Friday.
If anything else, I don't see how the above will actually fly with Trump especially if China isn't willing to give in on major sticking points like IP protection or its currency.
USD/JPY moved up to a high of 107.41 briefly as yields jumped higher alongside equities as well. 10-year yields are up to 1.55% currently while the DAX is now up by 1.3%.
